MMP Resources plans to buy Hokkaido ski operator for S$1m
MMP Resources, formerly known as Sino Construction, is
planning to acquire Hokkaido ski operator JRT Trading for 80 million yen
(S$1.05 million) in cash. On top of that, it will repay over two years a 37.5
million yen loan that JRT Trading owes.
Comments
Andrea Soh
05 July 2016
MMP Resources, formerly known as Sino Construction, is planning to acquire Hokkaido ski operator JRT Trading for 80 million yen (S$1.05 million) in cash. On top of that, it will repay over two years a 37.5 million yen loan that JRT Trading owes.
The group said on Monday that it has entered into a non-binding heads of agreement with the vendor, Clayton Anthony Kernaghan, on the deal.
JRT Trading manages a ski lodge, a Hokkaido tour business and a rental business based in Higashiyama, a town in Niseko Abuta District, Shiribeshi sub-prefecture in Hokkaido, Japan. Its main operations are running Black Diamond Tours, Hokkaido Backcountry Club, Black Diamond Lodge and Chisenupuri Ski Area leases. MMP plans to refurbish and build more retail space within the two-storey building that currently houses Black Diamond Tours and Hokkaido Backcountry Club.
The group said that the acquisition is in line with its new strategy to focus on construction opportunities, asset acquisitions and brand growth in tier one markets, with a specific focus on the travel, hospitality and leisure industry.
In December last year, it had said that its focus was on renewable fuels, fuel technology, renewable energy generation, commercial and retail construction and building materials.
MMP Resources made a profit of S$229,000 in the first quarter of this year - against a loss of S$289,000 a year earlier. Revenue rose 80 per cent to S$615,000, thanks to monthly management fees generated from operating micro-power plants in Korea on behalf of Primeforth Renewable Energy.
The group, which was listed on the Singapore Exchange (SGX) mainboard since June 12, 2008, was placed on the SGX watch-list on March 3 this year following three consecutive years of losses. In February, MMP also said that it was given an extension to Sept 1 this year to meet SGX requirement for a minimum trading price of S$0.20 for its shares.
Shares in MMP fell 0.1 cent, or 33 per cent, to 0.2 Singapore cent on Monday after the announcement. Some 16.6 million shares changed hands.